Construction on 20 new homes to be built by Ngaitai families will begin today when Housing Minister Mark Gosche heads to Torere to hammer in the first nail.

The Ngaitai Iwi Authority, Habitat for Humanity and the Housing Corporation have joined forces to build the houses on papakainga (Maori owned land) at Torere in the Bay of Plenty.

The homes will be built by iwi members, participant families and habitat volunteers. Work carried out will be added to the capital needed for the project. The "whanau self-build" will see participants receive on-site training and will use skills gained from technical college courses.

"Ngaitai iwi are building their own homes and building their own futures," said Mr Gosche.

"By learning how to build their own homes Ngaitai are also building on their skills and expertise."

"They want to address poor quality housing and overcrowding experienced amongst Ngaitai families."

"Our project demonstrates how Government can invest in communities and work alongside iwi."

"There are no excuses for New Zealanders to live in substandard housing conditions that end up adversely affecting the health, wellbeing and future of their whanau."

"Eradicating substandard housing amongst Ngaitai families and making sure decent, affordable housing is available is a key way this Government is working with Maori to close disparity gaps that exist between them and other New Zealanders."

The Housing Corporation contribution is $800,000, Habitat for Humanity $400,000 and Ngaitai iwi $200,000.

"Housing problems are diverse as the people and families that experience them. Therefore Government is committed to working alongside iwi to find solutions that work for them," said Mr Gosche.

The twenty homes will be built on papakainga or Maori-owned land in and around Torere.

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